The day started off quietly, with little fresh news from the weekend and the market awaiting the day’s two big expected events:

  • The Greek parliamentary vote on the 2013 budget, and
  • The Preliminary Q3 GDP figures out of Japan.
  • The Greek parliament comfortably passed the budget (not unexpectedly), the EUR/USD catching a bit of bid in the wake, along with the AUD, NZD and CAD (but we are not talking much of a move higher).
  • At 2350GMT we got Preliminary Q3 GDP figures from Japan, coming in at a drop of 0.9pct, as expected.
  • The annualized figure came in at -3.5pct; again, as expected.
  • The quarterly result is the first QoQ drop in 3 quarters, and 2011 GDP was revised down, exports were down, domestic demand down, … not a good report at all…
  • USD/JPY … well, it did nothing in response, and continued to do the same for the rest of the day; very tight range.
  • Head of the BOJ Masaaki Shirakawa was due to give a speech today in Tokyo. Just prior to any reports from his speech hitting the newswires the Japanese Economics Minister Maehara had some comments of his own reported, saying that while he couldn’t deny the possibility of Japan falling into recession, the final decision on this will be made later. Also, he said to expect the BOJ to pursue powerful monetary easing (which, curiously enough, was the exact same thing reportedly said by BOJ head Shirakawa a few minutes later … Get a room you two).
  • Shirakawa made his speech, it was reported (highlights here) … and still USD/JPY did nothing.